Banking Services - DenizBank

Section IV Independent Audit Reports, Financial Statements and Notes
DENİZBANK ANONİM ŞİRKETİ
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF 31 DECEMBER 2009
(Currency: Thousands of TRY-Turkish Lira)
Convenience Translation of
Consolidated Financial Report
Originally Issued in Turkish, See Note 3.I.2
Tangible assets purchased before 2003 and in 2007 are depreciated on a straight-line basis and those purchased in 2003, 2004, 2005 and
2006 are depreciated using the double-declining balance method. The depreciation rates used are as follows:
Purchased
before 2003
Purchased between
2003-2006
Purchased
in 2007
Purchased between
2008-2009
Movables
-Office equipment 20% 40%-50% 20%-25% 10%-25%
-Furniture and fixtures 20% 20%-50% 10%-20% 12.50%-20%
-Vehicles 20% 40%-50% 20%-50% 20%-50%
-Other equipment 20% 4.44%-50% 2.50%-50% 2%-50%
Properties 2% 2% 2% 2%
The Bank has an impairment provision of TRY 4,402, which had been recorded in the prior year, for its buildings as 31 December 2009.
Gains and losses resulting from the disposal of tangible assets are recognized in “Other Operating Income/Expense” account in the
consolidated income statement representing the difference between the net restated value of the tangible assets after the inflation
adjustment until 31 December 2004 and their net sales revenue.
Expenditures for maintenance and repairs that are routinely made on tangible assets are charged as expense. Expenditures that extend the
capacity of the tangible assets or those that extend the useful life and service capacity of the asset, or enhance the quality of the service,
or decrease the cost of services are capitalized.
There are no restrictions such as pledges and mortgages on tangible assets or any purchase commitments.
XIV. Explanations on leasing activities
The maximum period of the lease contracts is 4 years. Fixed assets acquired through financial leasing are recognized in tangible assets
and depreciated in line with fixed assets group they relate to. The obligations under financial leases arising from the lease contracts are
presented under “Financial Lease Payables” account in the balance sheet. Interest expense and currency exchange rate differences related to
leasing activities are recognized in the income statement.
In the event that the lease contracts are terminated before the lease period expires, penalty required to be paid to the lessor is expensed in
the period in which the lease is terminated. There are no lease contracts that were terminated before the lease period expired.
DFS Group has financial lease transactions as “lessor” via its subsidiary, Deniz Leasing. The lease payments related to leased assets are
recorded as financial lease receivables. Periodical financial leasing revenues, total financial leasing investments, unearned financial lease
revenues and lease revenues are accounted for during the whole leasing period using the net investment method.
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